THE BAILOUT PLAN & THE JOB MARKET

How Will The $700 Billion Bailout Plan Affect Jobs In The U.S.?

Well, it looks like Congress and the White House have come to an agreement on the wording of the proposed bailout plan. The Agreement was reached sometime yesterday (Sunday, 9/28/08), after the White House yielded to Congressional demands on sharing spending controls of the plan.

Justifiably, Congress was extremely reluctant to hand the Bush administration a “blank check” for such an enormous amount of taxpayer money, without having some degree of oversight.

So, U.S. lawmakers will begin voting on this bill today and within a few days we should know if this bailout plan has been written into law. The short title of the bill is the “Emergency Economic Stabilization Act of 2008,” and, should it succeed, we’re likely to see a rebound in the health of U.S. financial markets.

But, how will the success of this plan affect the nation’s job markets?

Some analysts are saying that the simple fact that the plan becomes law will soothe financial tensions, usher in a return of confidence and unclog the credit crisis. This, in turn, will stimulate investment, including investment in new business and new jobs.

Additionally, if the bailout works, it will prevent the economy from sliding into a recession and, thereby, save more jobs.

Stabilization is the key, and this financial stabilization could allow most of us to return to “life as we knew it” before the sub-prime mortgage mess, which brought on this calamity. But, just in case, better keep a rabbit’s foot in your pocket.

For more see:
ABC News.com
The Boston Globe
San Francisco Chronicle
Los Angeles Times